Paperwork problems nearly scuttle homeowner's refinancing

A $10,000 mistake by a title company nearly wound up costing a Blue Springs family.

James Lyon said he tried to refinance his family's home, but he hit a road block because of a paperwork mistake that wasn't his fault and shouldn't have happened in the first place.

"My feeling is, 'Why did I bother?'" Lyon said.

He said he still wants to know who exactly is responsible for the error that kept him from refinancing his home as historically low interest rates continued to rise.

He said he went he bought his Blue Springs home four years ago, a lien on the prior owner's title hadn't been cleared. His new lender at James B. Nutter and Company said someone else let his title slip through the cracks.

He said when he called his title company, Kansas City Title, and the prior owner's company, Stewart Title, no one would help. Both companies deny that they did anything wrong.

"I would just like someone to take some responsibility and stop pointing fingers," Lyon said.

In the five weeks while he's tried to work through this problem, the interest rate jumped by a half of a percent. It may not sound like much, but it makes a big difference over the life of a loan.

"I need this resolved," Lyon said. "I need them to know that, to them, this is just a minor paperwork error. To me, this is $10,000."

James B. Nutter called KMBC 9 News late Thursday afternoon to say that the company has been able to lower Lyon's interest rate back down to the original 3.5 percent, saying the bond markets did well in the morning. Lyon said he's thrilled and plans to close on his refinancing deal Friday.

A mortgage broker at the Executive Lending Group said it's a problem he's only heard of once before. He commended James B. Nutter and Company for making the situation right, even though the problem wasn't that company's fault.

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